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Construct the corresponding cash flow diagrams

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Question - A company plans to deposit money in to an account for the expected maintenance costs in the future. The base amount of money that will be deposited at the end of next year is stated to be $4500, which is estimated to increase by $500 per year for 9 years. Determine the equivalent (1) present worth and (2) annual series amounts if funds earn interest at a rate of 8% per year. Construct the corresponding cash flow diagrams.

Reference no: EM132756803

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